By Stephen Lee
Quotes in article on how “The new head of the EPA’s in-house financial advisory board wants to prove low-income communities of color aren’t risky places for private investors to park their money”:
‘Matter of Education’
Some financial organizations don’t understand that projects in environmental justice communities can bring a healthy return, raise the value of ramshackle properties or regions, and improve their public standing, according to Gernot Wagner, an environmental studies professor at New York University’s Wagner School of Public Service.The trick to opening their eyes is providing different financing options, such as credit support or a “patient” capital approach that focuses on long-term results, as well as providing detailed repayment data, O’Neill told Bloomberg Law in her first interview since being named the board’s chair.
“Over time, mainstream lenders learn, ‘Whoa, look at that, the loan performance is really great,’” she said. “Sometimes it’s a simple matter of education.”
Wagner agreed, saying that “hyper-efficient, multi-gazillion-dollar hedge funds just don’t typically look for opportunities like these. If someone were to look hard enough, they might figure out a way to convert a former rail yard into the perfect centrally located, mixed-use housing development.”
Full article:
“New EPA Adviser Looks to Juice Investing in Communities of Color” by Stephen Lee, Bloomberg Law, 1 September 2021.